Liquidity Down, Mergers Up In VC Markets
The third quarter was a mixed bag for American venture capitalists, but did show signs of life as capital raised through initial public offerings hit its highest level since 2007.
According to Dow Jones VentureSource, there were 71 mergers and acquisitions of venture-backed companies, a number consistent with pre-boom totals recorded in 1999. VentureSource noted that the total does not included Amazon.com's acquisition of Zappos, because as of Sept. 30, the deal had not closed.
However, venture-backed liquidity was down 49 percent from the $5.32 billion posted in the third quarter of 2008.
VentureSource said that while totals are still down, the liquidity market for American venture-backed companies is showing "signs of significant thaw."
And while the merger and acquisition market remains soft, corporate buyers are shopping for promising start-ups in certain industries. "Most venture investors are looking for a 2010 rebound," VentureSource said.
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